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19 Mar 2014
Flash: GBP/USD turns attention to 1.6547 – Commerzbank
FXStreet (Edinburgh) - Karen Jones, Head of FICC Technical Analysis at Commerzbank, observes that the 55-day MA at 1.6745 and 1.6541 (uptrend) are gaining relevance in GBP/USD.
Key Quotes
“GBP/USD attention is firmly on the 55 day moving average at 1.6547 and the uptrend at 1.6541, these are starting to look exposed. We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to still see the market struggle ahead of the 1.6822 February high”.
“We suspect that the market will need to break back below 1.6541 (the 8 month uptrend) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013)”.
Key Quotes
“GBP/USD attention is firmly on the 55 day moving average at 1.6547 and the uptrend at 1.6541, these are starting to look exposed. We note that the Elliott wave counts on the daily, weekly and monthly charts indicate that this is the end phase of the move and we would expect to still see the market struggle ahead of the 1.6822 February high”.
“We suspect that the market will need to break back below 1.6541 (the 8 month uptrend) in order to re-focus attention on to the 1.6259/29 support zone which remains key (September high and the 23.6% retracement of the move up from July 2013)”.